Crypto:
29881
Bitcoin:
$68.752
% 0.65
BTC Dominance:
%52.7
% 0.31
Market Cap:
$2.57 T
% 0.03
Fear & Greed:
75 / 100
Bitcoin:
$ 68.752
BTC Dominance:
% 52.7
Market Cap:
$2.57 T

Australians Turning to Crypto!

Australians

Australians are increasingly turning to cryptocurrency to secure their retirement savings. Investments in this asset class are rapidly growing among self-managed super funds (SMSF). According to statistics published by the Australian Taxation Office (ATO) on November 26, SMSFs now hold a total of $658.6 million (AU $992 million) worth of cryptocurrency. This represents a 400% increase from the same quarter in 2019, when the value of SMSF crypto assets was only $131.5 million (AU $198 million).

The growth of crypto investments in SMSFs reflects the rising popularity of digital assets among Australian investors. Cryptocurrencies are seen as a potential hedge against inflation and a way to diversify retirement portfolios. In contrast, listed shares, the largest allocation category for SMSFs, only grew by 28% during the same four-year period, while allocations to debt securities, such as bonds, fell by 5.8%.

Despite the recent growth, crypto assets held in SMSFs continue to remain below their record level of approximately $1.06 billion (AU $1.6 billion) in the quarter ending in June 2021. This decline can be attributed to the wider crypto market downturn in 2022. However, the overall trend of increasing crypto investments in SMSFs indicates that Australians have confidence in the long-term potential of digital assets.

Danny Talwar, the head of tax at crypto tax provider Koinly, noted that crypto only makes up 0.1% of the total net assets held in Australian SMSFs. However, he highlighted that crypto is the “fastest-growing asset class in SMSFs” and that smaller SMSFs tend to allocate a larger proportion to cryptocurrencies in their portfolios.

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Talwar also suggested that local crypto exchanges are increasingly offering crypto retirement products, which should encourage more Australians to consider investing in crypto as part of their retirement plans. However, he emphasized that the rules are stricter for holding crypto in a retirement fund:

“Your SMSF strategy should allow for holding crypto. Its sole purpose needs to be providing you with retirement benefits. You need to get everything audited. You need to keep SMSF assets separate from personal assets. There can’t be a grey line between the two,” explained Talwar.

Despite regulatory hurdles, the increasing popularity of cryptocurrencies among Australian investors suggests that this asset class will play an increasingly larger role in retirement planning in the coming years.


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